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THE CONSTITUTION, MADE UNDERSTANDABLE

Article 243Y
Finance Commission

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Source edition: as on 1 May 2026. Omitted and struck-down reference entries remain labelled. Open the authoritative PDF ↗

Article 243Y / Part IXA

Finance Commission

included in edition
Plain languageOfficial textPurpose & sources
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THE PLAIN-LANGUAGE GUIDE

What does this mean?

The State Finance Commission also reviews municipal finances and recommends the specified revenue arrangements. Its recommendations and action memorandum go before the State legislature.

The framework for municipalities, urban representation, finances and district or metropolitan planning.

PURPOSE & CONTEXT

Why is this provision here?

Urban local self-government needs workable representation, resources, accountability and territorial rules. This supplies the particular rule described above.

Historical evidence

Article 243Y was introduced in its present subject framework by Amendment 74 (1992), after the original Constitution. The verified sources are the official edition and the linked Amendment Act and Bill statement. Original 1946–1950 Assembly debates predate this insertion and are not presented as its direct drafting reason. The explanation of function above is editorial; the Bill statement supplies the attributed legislative reasons for the later proposal.

The explanation of purpose is an editorial reading of the provision. A drafting motive is attributed only where a linked historical source supports it.

Limits, exceptions & reading carefully

Educational summary of the linked source text. Exceptions, provisos, implementing laws and applicable judgments must be read before applying it to a real case.

Amendment references
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Read the official constitutional text
243Y. Finance Commission.—(1) The Finance Commission constituted under article 243I shall also review the financial position of the Municipalities and make recommendations to the Governor as to— (a) the principles which should govern— (i) the distribution between the State and the Municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them under this Part and the allocation between the Municipalities at all levels of their respective shares of such proceeds; (ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the Municipalities; (iii) the grants-in-aid to the Municipalities from the Consolidated Fund of the State; (b) the measures needed to improve the financial position of the Municipalities; (c) any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Municipalities. (2) The Governor shall cause every recommendation made by the Commission under this article together with an explanatory memorandum as to the action taken thereon to be laid before the Legislature of the State.

Extracted from the Legislative Department’s May 2026 edition. Page footnotes may refer to neighbouring provisions; check their markers in the PDF. Inclusion in this edition does not by itself establish commencement or judicial effect.